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Texas Instruments are once announced a price for random-access memories that wouldn't be available until two years after the announcement. A few days later, Bowmar announced that it would produce this product and sell it a lower price than Texas Instruments. A few weeks later, Motorols said it, too, would produce this product and sell it below the Bowmar price. A few weeks after this, Texas Instrments Announced a price that was one-half of Motorola's. The other two firms announced that, after reconsidering their decision, they would not produce the product. What do you think was Texas Instruments reason for announcing the price of a product two years before it was actually for sale?
Temperatures have persisted below freezing levels in Florida throughout the months of December and January. As a result demand for electricity sharply increased and the price of lectricity rose sharply. The price of coal also rose. In these circumsta..
What are some of the ethical challenges for businesses in the 21st century arising out of the advancements in information technology and increased emphasis on globalization, and how are these challenges likely to impact the approaches businesses t..
Consider a Cournot oligopoly consisting of four identical firms producing good X. If the firms produce good X at a marginal cost of $7 per unit and the market elasticity of demand is −2, determine the profit-maximizing price.
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
Consider which stage of Maslow's Hierarchy of Needs you are most likely in that drives a lot of your purchase decisions. Are those purchases consistent with this stage? As noted in the topic, a person could be at different levels in Maslow's Hierarch..
A firm suggests that they and their competitors (oligopoly) lower their production to limit supply and increase price. Thinking about the kind of game this is...would it be a Bertrand or Cournot; would it be finitely or infinitely repeated and would ..
Mr. Smith wishes to sell a bond that has a face value of $1000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago the bond was purchased at $900. At least a 9% annual return (APR) on the in..
Suppose that production of very cool cars in Denmark (a small open economy) increases exports in Denmark. How does this event affect the Danish NX curve, the Danish real exchange rate, the Danish nominal exchange rate (the Danish kroner to be more pr..
For several years the euro-zone economies are underperforming. In other words, . Recently, the ECB reduced the policy interest rates from 1.5% to 0.5% and hinted further monetary easing. Consider the euro-zone as a large open economy under floating e..
All firms in a competitive industry have long-run total cost curves given by LTC(Q) = Q3 – 10Q2 + 36Q where Q is the firm’s level of output. What will be the industry’s long-run equilibrium price? What will be the long-run equilibrium output level of..
For which of the following goods would a 10 percent price increase lead to the largest income effect for most consumers?
Consider how the globalization of markets and production has changed the nature of policy decisions. How are events in Europe and other parts of the world influencing the economy in China?
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